Value Research suspends ratings of 59 funds following SEBI reclassification

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One of India’s leading mutual fund ratings agencies, Value Research, has announced that it has suspended the ratings of 59 funds following the industry-wide SEBI reclassification exercise. If you include direct plans, the total number of schemes which have seen their ratings suspended goes to 118 schemes. The suspensions have been on various grounds. At the end of this article, we give you a list of schemes with suspended ratings due to the merger or the drastic change of investment mandate.

Ashutosh Gupta, Vice President at Value Research, in a written reply to RupeeIQ gave the details of ratings suspensions as follows:

Thus if you specifically consider drastic changes in investment mandates, the number of funds whose rating has been suspended on this ground is 36.

Morningstar, India’s other major ratings agencies, has also provided the details of funds whose ratings have been suspended due to a drastic change in investment mandate. The ratings agency provided details of eight such funds. It indicated that the list was bigger if you include other grounds of ratings suspensions such as the shift to a category not rated by Morningstar.